Your guide to leaving a legacy & estate planning
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The Child Development Centre Of Prince George and District
Your Legacy will mean the world to children of all abilities. Developing potential takes the kindness of many. When you remember the Child Development Centre in your will, you’ll be shaping the future of the children with developmental challenges in your community.
Leave a Legacy to:
The Child Development Centre of Prince George and District
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TERESA MALLAM
Legacy Project - Free Press
A very special gift
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The Legacy Project
The monetary gift can be small or large but it always comes from the heart. Donalda Carson, executive director of Prince George Hospice Society, has seen gratitude for their end of life care expressed in many ways: flowers, testimonials, simple thank you – or a gift of money. “It is not unusual for us to receive donations from the families of loved ones who have used our services. They feel gratitude and so it’s their way of thanking us. But also I think they want to make sure that Hospice is going to be there for the future for other people.” The size of the gift varies with each family, she said. “We get gifts that range from very small to large, and it is all welcome, but the one from the Dean Shaw family was an exceptional donation. It enabled us to go ahead with the capital expenditures involved in actually constructing this new wing.” Two very large planters which flank the entranceway are filled with flowers which are tended to by Dean Shaw’s wife Vivian. “Vivian comes here and looks after the flowers and keeps them looking beautiful,” said Carson. “So that is another way this family has helped us.” There are many ways for people to leave a legacy, she says. “People can make a bequest in their will for Hospice or they can arrange
Te re s a M A LLA M / Fre e Pre s s
Donalda Carson, executive director of Prince George Hospice Society, stands at the entrance of the Dean Shaw Wing, named for the man whose family gave a monetary gift making construction of the new space possible. to leave us RRSPs or shares which can remain as an investment making money for the future. We use donations we receive mostly for operating expenses. Like other organizations (and individuals) in the community we have to pay bills, buy food, pay staff and so on.”
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Leave a legacy of hope for a better future.
It is a privilege to be providing over 28,000 Prince George households with information on what’s happening in our caring city. Delivering Your Message Home
950 Kerry St., Prince George, BC V2M 5A3
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over the years been able to enhance the quality of life and death for individuals and support grieving family members. The work they do is needed and any funds they can raise from the community to support their efforts is always welcome, she said.
Most people know about the work of the Hospice Rotary House built in 1995 and Forest Expo House – The Caring Place which houses administration, volunteer resources and fund development. And they ask how they can help. Carson is pleased that the society has
Ph: 250-564-6408 Visit our website
www.aimhi.ca Charity Number 11910 3323 RR0001
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Wonderful flower baskets in the Amber Garden at the Elizabeth Fry Society in Prince George. The garden was made possible through a couple of local donations.
OLE H. SORENSEN, E.P.C. PRINCIPAL
935 Brunswick Street Prince George, B.C. V2L 2C3
SORENSEN FINANCIAL SERVICES INC.
Ph: (250) 561-1011 Toll Free: 1-800-561-1024 Fax: (250) 561-1037 e-mail: ole@sorensengroup.ca
Donations help E. Fry TERESA MALLAM The Legacy Project
They responded to a simple request for a single silent auction item. Now two local business owners have made it possible for women and children staying at a transition house – now and in the future – to enjoy an aesthetically pleasing
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and safe outdoor play area. Last year, local Elizabeth Fry Society fundraisers were looking for auction items that would lead to the purchase of much needed new playground equipment at their Elizabeth Fry transition house called Amber House. turn to PAGE 5
donate to Big Brothers Big Sisters of Prince George you start something for local kids - and it could be the start of something big such as
A healthier community
start something E
ach year the British Columbia Society for the Prevention of Cruelty to Animals helps more than 32,000 abused, sick, homeless, injured, lost and neglected animals across the province. Your support enables the BC SPCA to be there for them, giving them a second chance at life. Please help by making a donation or leaving a gift to the animals in your Will. Visit us at spca.bc.ca or contact: Dave Roberts, Gift Planning E: droberts@spca.bc.ca P: 1.800.665.1868
BCSPCA SPEAKING FOR ANIMALS
www.bbbspg.ca 250.563.7410
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Playground benefits from donation from PAGE 4
“I met with the owners of Norcan Consulting and Tops and Bottoms and I was just ecstatic when they told me that they were willing not only to support us in terms of rebuilding our playground but also with doing landscaping and making a place where the women would feel safe and not be visible [to passersby],” said program manger Amanda Alexander who worked on the Adopt a Shelter campaign. The big financial boost meant work on the playground could begin and be completed sooner, she said. “We just finished the playground work in March and we also did some resodding,” said Alexander. “Our garden, outdoor shelter and children’s playground was all made possible exclusively through the generous donation we received from Norcan Consulting and Tops and Bottoms.” And the generosity didn’t end there, she said. “They not only provided a safe, enjoyable outdoor play area for the women and children who access Amber House, but they also donated a fully decorated Christmas tree, with gifts. And each year, they have donated and attended our annual fundraiser Another Kind of Love.” For more information on the work of the Elizabeth Fry Society and how you can help visit www.pgefry.bc.ca.
Playground at the Elizabeth Fry Society facility in Prince George that benefitted from a local donation.
Sometimes, what changes remains the same. The BC Paraplegic Paraplegic Association is now:
Addiction Recovery & Therapeutic Community
Your gift will help ensure that British Columbians with spinal cord injury (and related disorders) & their families will continue to receive the essential support and services needed to help them adjust, adapt and thrive - whether they are dealing with a new injury or struggling with the ongoing challenges of living and aging with a physical disability. For more information, visit www.sci-bc.ca or call 1-800-689-2477 Please note: gifts should be made to our legal name, which remains Canadian Paraplegic Association (BC)
Baldy Hughes Therapeutic Community is the premier recovery community in British Columbia catering to men suffering from addiction. Our model is an innovative and novel approach to treating substance abuse and is inspired by the highly respected and world-renowned therapeutic community in Italy. The success of our abstinence-based program can be attributed to long-term treatment in a remote recovery community setting. Bequeathments & Legacy Gifts You may include in your will a provision for the BC New Hope Recovery Society. This could be for a specific sum of money, a particular property, or a percentage of your estate. If you are interested in making a legacy contribution of this type to Baldy Hughes please contact us by email at info@baldyhughes.ca.
BALDY HUGHES THERAPEUTIC COMMUNITY 34000 Blackwater Rd Prince George, BC V2N 6H1
Phone: 250-964-3136 Fax: 250-964-3162 info@baldyhughes.ca
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Planned giving can help non-humans too
DELYNDA PILON The Legacy Project
Caring for some of the most vulnerln ner erable members of society, the SPCA A has ha as been the choice of many when it comes om mes me to planned giving. Sarah Thompson, the assistant branch ancch aan ch manager of the Prince George SPCA PCA said there are a few different w ways ay ys people can choose when it comess tto o planned giving. “One way is, when a person is having vin ng ng a will written, a donation can be written iittteen right into the will. Then a designated ateed ed portion of the estate, or a portion from frrom m the proceeds of the estate, will go to the o th he he SPCA,” she said. “Some people do that. ttha hat. It’s called legacy planned giving.” In fact, Thompson herself has planned nn n ned a legacy gift for the SPCA. She is also alsso part of the PAW program. “With this program, funds are reguegu ularly removed from your cheque or V Visa isa sa every two weeks,” she said. And, at the end of the year at tax time ttim im me the donor gets a receipt. The money given can go to a general neera n ral fund, or the donor can specify exactly aacttly ly which program the funds will support, porrt rt, be it the spay and neuter fund, the bi bisiss-cuit program or something else. “It can be something you are really eea allly excited about. “Sometimes planned giving money one o neey is used to create a grant or develop op a certain program - whatever the g giver iveer er specifies,” she said. Another way planned giving works ks iiss through ‘in memorium’ donations. Thompson said the SPCA has a brochures at the city’s funeral homes. Families who wish to utilize them can put
them out services guests make tthe th hem em o ut aatt se ut ser erv rvic rvi iceess sso o gu g ueesst sts ts ccan aan n m ake ak ake donations in the name of the loved one who passed away. The envelopes have a pre-sealed portion so they can be dropped in the mail
the box fol box bo ffollowing fo oll llowi owin ow ing tth ing he se sservices, serv errv viicces ces es orr tthey heey h ey ca can an be be dropped pp off at the SPCA office. “Then a card will be sent to your loved one acknowledging the gift,” she said. Acknowledging the generous donations
way tthat th hat at ccome om o me th ttheir heeiir w wa ay is is iimportant mp m porrttaan ntt aatt th the he SPCA. “We have two fellows - that’s their whole job. They make sure everything is handled appropriately,” she said.
Carefree Society is your local Handy Dart and Community Bus operator We provide specialized door to door transportation, operating as a shared taxi. To use our service you must have a disability that prevents you from using the city bus. Carefree is dedicated to our Community, continually fund raising for bus replacement and extra service demands. A Legacy gift will ensure our ability to serve your community.
Diabetes is a growing epidemic. With more than 20 Canadians diagnosed every hour, chances are diabetes will affect you or someone you love. But you can make a difference…
Let a cure for diabetes be your legacy Canadian Diabetes Association 103 - 490 Quebec St, Prince George, BC V2L 5N5 Tel: 250 561 9284 Fax: 250 561 0009 Boyanne Young Northern Region Branch Coordinator
diabetes.ca
Carefree Society 2832 Queensway St. Prince George, BC V2L 4M5 Charitable Tax Number 11883-8358-RR0001
Charitable Registration #11883 0744 RR0001
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Local expertise on planned giving IAN GREGG The Legacy Project
Local businessman, Matthew Calvert found time outside of his busy family life to write a book with the working title, “An Insider’s Guide to the CRA and Lowering Your Taxes in Canada.” Among personal, proprietary, and corporate tax tutorials — for which Calvert underwent great lengths to make savoury — there lies a guide to planned giving. I caught up with Calvert at Mai Thai on Wednesday afternoon and discussed the topic. Calvert agrees that a decision to make a future gift, evidenced by a legal contract suffices to define planned giving, though he believes there are many options available to the giver. An excerpt from his book reads: “With charitable giving through life insurance you can create a lasting legacy by simply making payments into a policy that names a charity of your choice as the beneficiary.” One does not have to bundle up a lifetime of savings to donate, but can instead make small payments for insurance. The multiplicity of methods to give appears endless and none are wrong, though Calvert’s book certainly highlights the better choices. Yes, monetary donations make a difference, but don’t forget about the gift of time. He goes on to say, “Some value time over money. Donating time to an organization can easily add up to the equivalent of a handsome donation. You just have to make a determine what suits you best.” Not everyone can leave a Carnegie Hall in their wake, or the $100,000 two locals generously donated to St. Vincent de Paul’s drop-in centre back in 2000, but any contribution makes a difference. The quality of life increases for both parties no matter what form a donation takes. People have been taken to court over planned giving and legacy projects in the past, due to Ian G R EG G /The Legacy Pro je ct poorly planned giving. These situations don’t happen often, but hiring the appropriate professional Matt Calvert is releasing a book on planned giving in 2013.
avoids horrendous error. Your accountant shouldn’t all-of-a-sudden become your insurance salesman, and you shouldn’t become an expert accountant at the drop of a hat. The Canada Revenue Agency (CRA) tends to notice the latter. It’s up to the client to seek out the correct financial advisor, and it’s up the advisor to pass on a client when his or her expertise loses relevance. Calvert emphasizes: “If you don’t normally sell insurance, then don’t go and sell insurance without the qualifications or the know-how. We have a tertiary duty to our clients to make sure we do things the right way.” When someone thinks they might need help making a few decisions, they should probably get some. It never hurts to open one’s eyes to other beneficial possibilities. Since the financial world is in a constant state of flux, Calvert admits that he has held back from publishing his financial advice online in the past. Everything can change in an instant: “Three months ago I informed my clients that bonds were a safe bet since the financial world was looking pretty hairy. Over the last week every major economy in the world announced that they would provide massive liquidity in the markets. This stands to boost the world economy enough that I’m altering my financial advice. I have a lot of phone calls to make all due to a brief series of important announcements.” Calvert hopes to update his book every two years to stay current. If balancing these updates and the book’s promotion doesn’t keep him busy enough, he says he intends to write another version for the U.S. audience. When asked what personal outcome he hopes to achieve from this publication, he replies with modesty, “I hope to hold seminars across the country with this book and take my family with me so we can see Canada together. That would be truly amazing.” Matthew Calvert’s book, “An Insider’s Guide to the CRA and Lowering Your Taxes in Canada” will be available at Amazon.ca in early 2013.
What is a great legacy of a life lived? Helping future generations reach their full potential.
Consider a legacy gift to UNBC that will touch the lives of students, the future alumni who will strengthen northern communities. Forever. Giving can be as simple as a bequest to UNBC in your will or trust. Consider naming UNBC as a beneficiary of a life insurance policy or investments. Talk to us today about how you can ensure your wishes endow future generations. Call 250-960-5750 or email giving@unbc.ca 2012 Political Science Graduate Naomi Findlay of Burns Lake
Charitable Number 121620 7350 RR0001
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Include us in your estate planning and provide the YMCA experience to Prince George families of tomorrow. Learn more at www.pgymca.com
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The Davy family of Prince George found a way to give back to the community year after year. They established the Davy Family Endowment through the Prince George Community Foundation, which will be able to contribute to worthy causes forever.
Family gives through foundation
Mitchell and Andrea Davy wanted a way to give back to their community year after year. In 2007 they decided to establish a family fund with the Prince George Community Foundation. Knowing the history of the community foundation and the various avenues of support available to donate to, it seemed like a natural fit with the Davy’s philanthropic wishes. The creation of this fund has allowed them to present donations to organizations close to their
heart. Now with a growing family they are able to model to their young children the importance of giving and sharing as an important part of being an active citizen in our society. The oldest two children are now at an age where they can participate with their parents in deciding where this year ’s donations should go. One of the benefits of having a fund like this is that their original gift to the fund is held in per-
petuity with the annual returns being available to hand out as grants. By involving themselves and their children in the process of deciding where the grants will go, the Davy’s are creating a meaningful family legacy for their children to inherit. As a result the Davy Family Endowment Fund will be able to contribute to worthy causes forever. The Davy’s hope their example will encourage other families to think about how they might make a long term investment for their community.
The Fraser-Fort George Museum Society PO Box 1779, Prince George British Columbia V2L 4V7 Museum and Science Centre
Contact: Tracy Calogheros CEO tracy@theexplorationplace.com 250-981-5910
CRA Number R118930700 BC Society Act # S-9084
hap tthe he ffuture uture Your gift wwillill sshape
yest y,today tod y && tomorrow tomorrow ~~ making ki g history history ryy together tto ogg ther og ~~ yesterday, www.theexplorationplace.com
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‘one seed at a time’ a growing legacy
Educational Display Garden on the University of Northern British Columbia Campus Project of International Status to Develop a World Class Botanical Garden in Prince George Providing horticultural and arboricultural education for the public
DAVID DOUGLAS BOTANICAL GARDEN SOCIETY www.ddbotgarden.bc.ca
88916 1576 RR0001
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Larger legacy and smaller charities MALCOLM BURROWS The Legacy Project
Doing good and being practical. How philanthropists can give sizeable gifts to smaller organizations without running the risk of overwhelming them. Recently a client was agonizing about supporting two of his favourite charities in his will. They were smaller organizations at which he had served as a director. He was procrastinating about his estate plan because he knew the size of the contemplated gifts –about $150,000 per charity – may overwhelm the small entities. He was torn between doing good and being practical. One of the challenges of leaving a significant legacy is making the bequest match the size and capacity of the charity. Two-thirds of Canada’s 85,500 registered charities have annual revenue of less than $100,000 per annum. Smaller charities are volunteer run. They do great work, but often lack paid staff and experience with investments. The traditional method of addressing this situation is to put the funds in a charitable trust for professional management, asset protection, and a regular income stream to charitable beneficiaries. A contemporary solution is a donor A spend down advised fund in a public foundalegacy fund is a way tion, such as a community foundato provide annual tion. Donor advised funds are “giving accounts” that enable the donor (and donations for an potentially family members in the next specific number of generation) to make recommendations years that will be about the use of the funds. consistent, not lumpy. Most donor advised funds are endowments and only pay out income from invested capital. Donor advised funds have become recognized for their flexibility, simplicity and cost-effectiveness. Our client, however, didn’t want a perpetual endowment after he was gone – just a way to provide annual donations for ten years to his two charities. He wished to provide support each year that will be consistent, not lumpy. To accomplish this goal he created a “spend down” legacy fund at Aqueduct Foundation (www.aqueductfoundation.ca) in his family’s name. As a former board member, he was compelled by the idea of providing consistent funding that would not create over dependence. He also knew the annual grant was valuable enough to improve the charities’ flexibility and extra help in delivering their missions. The result: a personal legacy that is practical and enabling.
Legacy
Quick Look
“There is no reward equal to that of doing the most good to the most people in the most need.” - Evangeline Booth
Givin g Something Back The Prince George Community Foundation can serve as your one-stop gift-giving centre. Whether your interest is in arts & culture, education, environment, health, social services and sports & recreation, or a specific charity of your choice, we can direct your donation to a fund that satisfies you as a donor. Donations of all kinds are graciously accepted: cash, cheque, credit card, life insurance, securities or through estate planning. We are here to see that your gift-giving wishes of today become a reality in the community forever.
Malcolm Burrows is Head, Philanthropic Advisory Services at Scotia Private Client Group. He is a nationally-known philanthropic planner with over 20 years of experience with charities and Scotia Private Client Group. Scotia Private Client Group is the largest national service provider to private foundations and operates Aqueduct Foundation, a public foundation with donor advised funds. www.scotiaprivateclient.com/philanthropy
PO Box 1204, Station A 2880 15th Avenue Prince George, BC V2L 4V3 250-562-7772 www.pgcf.ca pgfoundation@telus.net
We provide the opportunity to make a lasting charitable donation to enhance our community forever
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Why you should have a will Making a Will is something few people like to discuss, but it could be the most important document you ever sign. You have worked hard to accumulate your assets and you should take the time to ensure those you intend to provide for do, in fact, receive your Estate when you die.
WHAT HAPPENS IF YOU DO NOT MAKE A WILL: - your assets will be sold and after payment of debts, the proceeds will be distributed according to the current provincial laws; - settlement of the Estate may be slower and more costly than if you have left a will; - taxes may be greater than if you had done tax planning in a Will; - your spouse may have to share the estate with your children and deal with the Public Guardian and Trustee to obtain funds for the maintenance and education of the minor children; - the share for all minor beneficiaries will be paid to the Public Guardian and Trustee and paid out upon the beneficiary attaining the age of 19 years of age; - heirlooms may be sold rather than going to survivors; - the Court will appoint a person to administer your Estate and it may not be the person you would have appointed as Executor; - all your Estate may go to your spouse’s family if you and your spouse die in a common disaster.
WHAT IS A WILL? A Will is a legal document in which you appoint an Executor and specify who is to receive your assets upon your death. It is especially important to have a Will if you have young children in order to appoint a guardian and to make arrangements for their maintenance and education. The named Executor can commence dealing with Estate matters from the date of your death although Let-
Helping each other... the northern way. The United Way helps one in three people in Northern BC.
ters Probate issued by the Court may be required in order to deal with most assets of the estate.
Legacy Project
Quick Look A will is a legal document in which you appoint an executor and specify who is to receive your assets upon your death. It is especially important to have a will if you have young children in order to appoint a guardian and to make arrangements for their maintenance and education. The named executor can commence dealing with estate matters from the date of your death although Letters Probate issued by the court may be required in order to deal with most assets of the estate.
SEEK LEGAL ADVICE If you are going to take the time to make a Will, you want to be sure it carries out your intentions and is valid. To be a valid Will, legal formalities must be met and careful attention must be made to the wording so the Executor has sufficient powers to carry out the administration of the estate and so there is no need for your Executor to seek the Court’s assistance to interpret the Will.
WHAT TO CONSIDER - who must you consider legally as beneficiaries;
- what are your assets and how are they held (joint, solely); - what are your debts; - are your loans and mortgages life insured; - do you have a buy-sell agreement that deals with your business interest on death; - have you named beneficiaries of your life insurance, retirement and pension plans; - who should be your Executor - get their consent, consider an alternate; - what should happen to your home; - do you want to make specific bequests; - do you want to leave funds to a charity; - who should be guardian of your minor children; - who will be beneficiaries of your Estate and who will receive the share of a beneficiary who predeceases you; - what if you and your spouse die in a common disaster; - do you have special requests for your funeral; - do you own assets outside British Columbia or Canada.
ONCE YOU HAVE A WILL - review your Will often and at least whenever there is a birth, death, separation or financial changes in the family; - tell your Executor where your original Will is located; - make a list of your assets and liabilities, keep it updated and tell your Executor where it is; - if you want to amend your Will, get legal advice. For legal advice on preparing a Will or administering an Estate, please contact: DONNA M. STELMOCK TRAXLER HAINES Barristers and Solicitors Ste. 614-1488 Fourth Avenue Prince George, B.C. V2L 4Y2 Phone: (250) 563-7741 Fax: (250) 563-2953
Northern BC is a unique place. It’s a place where people know their neighbours. Where lifelong friendships are made. Where people smile and say hello. It’s a place where people go out of their way to help those around them. We do a lot of things differently in Northern BC. We take pride in who we are, where we come from and what we do. One of the most important things we do? We help each other. That’s the northern way.
For more information on volunteer opportunities and United Way’s impact and activities in your community, please call 250-561-1040 or visit our website:
www.unitedwaynbc.ca
For more information regarding Legacy Gifts, please call 250-561-1040
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GIVING
AT
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The shelter in the Amber Garden at the Elizabeth Fry Society’s facility in Prince George was a direct result of a local donation.
ping H el
one another h
elp o neself
Camp Trapping – 40 years of continuous service for youth in a supportive, caring, structured environment. Our program provides a life changing opportunity and service. You can provide a gift that allows us to continue to enhance the experience for these young men.
A gift to Camp Trapping can help us to continue to change lives – forever. #130-1460 Sixth Avenue, Prince George, BCV2L 3N2 Phone: (250) 563-9159 Fax: (250) 563-9154 email: cats@bcgroup.net
Cariboo Action Training Society
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Charitable Leadership Working for the common good Proudly Supporting: ALLENGE ALL CisH B E S ing to. A m co B world 613-7492 4V9 250WORLD s what the ... it’ da, V2N The WBC , B.C., Cana ball.ca ince George et www.worldbase e Cres., Pr telus.n ll@ ba se worldba
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• • • • • • • • • • • • • • •
Commonwealth Financial Hockey Club PG Community Foundation Junior Achievement of BC Children’s Variety Club Alzheimer Society of BC PG Rotary Auction Canuck Place Canadian Legion Poppy Fund Mardi Gras Snow Daze PGSS Senior Volleyball Healthier U Awards Festival of Trees World Baseball Tournament College of New Caledonia Spirit of the North Healthcare Foundation • PG Youth Soccer Association • Ringette • JCI Prince George
A heartfelt than k you to: • Commonwea lth Mortgage Together, w e make a d iffere
nce
n, Chair Jim Swanso ge ball Challen World Base Citizen Field e org Prince Ge
udly supports Commonwealth Financial pro Pee Wee Hockey.
Vancouver Canucks Alumni Garry Monahan , Eddie Hatoum & Dennis Kearns enjoying the Commonwealth Cup. The Commonwealth Cup has raised over $250,000!
Prince George
“Some men see things as they are and say why - I dream things that never were and say why not.” George Bernard Shaw We agree with Mr. Shaw. At Commonwealth we dream of a world without poverty. A world without sickness. A world where every child has a chance to grow up in a wholesome, happy environment. We are proud of our contribution, but there is still much to be done. Commonwealth Financial is an authorized representative of The Canada Gift Builder Program. Working with a team of experienced financial professionals, we can provide timely and thoughtful strategies that can help you, help your favorite charity. If you are interested in making a difference to those that need it most, we would be honoured to work with you. D. R. McLaren President
COMMONWEALTH FINANCIAL Mortgages • Investments • Insurance
We Are the Experts in Planned Giving 250-960-2233
THE COMMONWEALTH BUILDING - 1448 - 6TH AVENUE
www.mycommonwealth.ca www.commonwealthcup.ca www.commonwealthhealth.ca
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Donations to CDC help in many ways
DELYNDA PILON The Legacy Project
The doors opened at the Child Development Centre in 1967, providing the city’s children with everything from therapy to day care services. A not-for-profit organization, the CDC operates through government grants which pay the wages of the staff, but does not cover the costs of other resources. “We do a significant amount of fund raising for our programs. We have to do the fund raising for our resources,” Les Smith, director of programming at the CDC, said. He added their Kris Kringle luncheon and annual golf tournament help raise a significant amount of funds. Donations, including legacy gifts, are also important. Donations can be provided to the CDC in a number of ways. Online donations can be made through canadahelps. org. One-time donations can be made by mail or in person. Monthly donations can be made through the Spirit of the North Healthcare Foundation’s sustainable support
Lawyers – Notaries Public Wills | Estates | Powers of Attorney Representation Agreements
Scotia Bank Building 614 - 1488 - 4th Avenue Prince George, BC V2L 4Y2
Telephone: (250) 563-7741 Fax: (250) 563-2953
program. Legacy Gifts offer another venue for supporters to help out. Legacy gifts are generally considered while people are doing their estate planning. “We’ve only ever had one incident where a person left anything to us in an estate. That allowed us to use if for different programming that we have. But it can also be used to help pay for equipment or anything the donor is interested in. The CDC’s website offer several reasons people decide to give a legacy gift. There are a number of reasons people make planned gifts. It often provides the ability for a donor to make a larger gift than they would otherwise be able to make. Most options provide tax befits, either now and in the future. Some options provide the donor to receive additional discretionary funds in exchange for a future gift. Charitable Bequests, because of their relative simplicity, are most often used, forming part of the donor’s last will and testament. Gifting Securities or Capital Assets to a registered charity such as the CDC ensures that the full value of the gift is realized. RRSPs and RRIFs can be subject to substantial taxation upon the death of their holder. Gifting these plans to a registered charity such as the CDC ensures that the full value of the gift is realized. For this reason, funds in retirement plans are often utilized first for planned giving Smith said both their early childhood eduction program and their program, early intervention program benefited from a legacy gift.
Honour your loved ones memory forever through a CNC scholarship or bursary in their name. Your donation will help the student of your choice continue their studies, while letting everyone know about the qualities of your special friend or family member. For more information, call
Annette Stevens, CNC Fundraising & Alumni Co-ordinator, 250-562-2131, ext. 5313
College of New Caledonia B R I T I S H C O L U M B I A • C A N A D A • W W W . C N C . B C . C A
Darrell Roze is the executive director of the Child Development Centre in Prince George.
Life is a puzzle We can help you put together your Planned Gift! 3089 Clapperton Street, Prince George 250.563.2551 www.hospiceprincegeorge.ca
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Leon’s mysterious childhood friend
Legacy Project - Free Press
Friday, October 5, 2012
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CRISIS CENTRE FOR NORTHERN BC Leave a Legacy to support those in need.
24 Hour Line
KATHY MANNAS The Legacy Project
As a child, Leon Bosse didn’t spend much time trying to figure out how his parents could afford to send him to The Salvation Army’s Camp Sunrise in Gibsons. A week at camp each summer was just part of being a kid. And what a wonderful part it was! Every year Leon eagerly awaited summer and what many children only dream about – canoeing, sharing a cabin with boisterous friends and zip lining over the trees. As a youngster, Leon’s family faced some challenging times. His father became disabled for awhile due to a freak accident at work and the family struggled to make ends meet. Leon’s parents attended services at The Salvation Army’s church in Metrotown while their children joined Sunday school. It was during these early years that the summers at Camp Sunrise began. As a 17-year-old, Leon extended his joy Leon as a young camper at Camp Sunrise. of camp by becoming a counselor at Camp Leon’s family attended Eddy’s memorial Sunrise. He continued as a counselor service. It was at the service that Leon for five consecutive summers. He began discovered the identity of his mysterious sponsoring a child for camp and contin- childhood benefactor, who had sponsored ues to do so today. Leon was thrilled to him for summer camp from the age of six be able to give others the same formative to 15. experience that had so positively shaped After his passing, the Metrotown church his life. learned Eddy had left a $25,000 bequest Eddy Orr was a “soldier” at the Metro- for the church and designated the gift town church for decades. He wasn’t to sponsor underprivileged children to wealthy but made a decent salary and attend Camp Sunrise. retired with a comfortable pension. For Eddy’s legacy continues to this day more than thirty years Eddy quietly pro- through The Eddy Fund. This fund has vided camp sponsorships for children he given, and will continue to give, young knew. He always asked the church to children the same powerful experience keep his gift anonymous. Leon enjoyed. In 2007, when Leon was 21 years old and Kathy Mannas, CFRE, is the Planned GivEddy was 88 years, Eddy passed away. ing Officer at the The Salvation Army.
When there’s no one else to listen 250-563-1214 1-888-562-1214 www.northernbccrisissuicide.ca
13134 6066 RR0001
1-888-564-8336(TEEN) www.northernyouthonline.ca
You can create a lasting legacy of love for all of BC’s children. It is a magical thing to know that a decision you make today could save the life of a child 20 years or more from now. But that’s what happens when you include BC Children’s Hospital Foundation in your estate plans.
Small Patients Great Needs For more information or to let us know you have made a gift through your estate, please contact the Gift & Estate Planning team at 1-888-663-3033 or plannedgivinginfo@bcchf.ca.
www.bcchf.ca
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Change the world one premium at a time Like many from our area, you have donated time and energy to make the world a better place and you have every intention of continuing to do so for as long as you are able. You are generous … but not so generous that you wish to donate to your federal or provincial governments in the form of taxes payble at death! OLE H. SORENSEN, E.P.C. What if you could make PRINCIPAL a donation, or several, to your favourite causes even 935 Brunswick Street long after you were physiPrince George, B.C. V2L 2C3 cally able and minimize taxes payable at the same Ph: (250) 561-1011 time? Toll Free: 1-800-561-1024 With charitable giving Fax: (250) 561-1037 SORENSEN through life insurance you e-mail: ole@sorensengroup.ca FINANCIAL SERVICES INC. can create a lasting legacy by simply making payments into a policy that names a charity of your choice as the beneficiary. You can choose to retain ownership of the policy or name the charity itself as owner. You also have the choice of making the charity the beneficiary of the life insurance policy or namPrince George & District Community Arts Council ing your estate as benefi2820-15th Ave., Prince George, V2M 1T1 ciary and having the proContact: Wendy A. Young ceeds paid out to the charCRA #: 118870104 RT0001 ity through the execution
A gift of Life Insurance can really make a difference for the charities you care about Chances are, if you are reading this publication, you likely have a strong commitment to your community and specific causes.
of your will. Depending on the ownership structure, you may be eligible for a tax credit for the premium paid or your estate would receive a tax credit for the death benefit payable when you pass away. In the latter case, the tax credit can be used on your final Tax Return to offset any income taxes payable by your estate. This would minimize the taxes your beneficiaries would have to pay and maximize their inheritance of your residual assets.
CASE STUDY
The Legacy Project
Quick Look
With charitable giving through life insurance you can create a lasting legacy by simply making payments into a policy that names a charity of your choice as the beneficiary. You can choose to retain ownership of the policy or name the charity itself as owner. You also have the choice of making the charity the beneficiary of the life insurance policy or naming your estate as beneficiary.
Mrs. Jones makes frequent donations to her local hospital. Even though she gives regularly, she would also like to give the hospital a “special gift” of $100,000 upon her death. Life insurance is an effective way to plan for this gift. Insurance Solution Mrs. Jones’ personal information • Female aged 64, non-smoker, • Insurance product - InnoVision, Yearly Renewable Term to age 100 • Personal tax rate 45 per cent • Assumed life expectancy - Age 87 The cost of the life insurance is $208 per month. By paying this amount, Mrs. Jones has guaranteed the hospital will receive the
$100,000 gift. Using an alternative taxable investment and assuming that investment earned five per cent each year, when Mrs. Jones died the investment would be worth approximately $81,000. By using life insurance, Mrs. Jones has been able to increase the size of the gift by over $19,000. Case Study Source: Manulife Financial For your future, “Charitable Giving – Protect our environment feed the children fight cancer or heart disease”, November 2011.
MacNeil Financial offers Insurance, Investments* and Financial Planning Services for corporations and individuals.
INVESTMENTS* Specializing in corporate and personal portfolio’s, risk management planning for both growth and retirement income. *(Mutual Funds offered through the dealership of Sterling Mutuals Inc.) INSURANCE Offering life, critical illness and disability insurance. BENEFITS Offering medical, dental and pension plans. MacNeil Financial and Insurance Brokerage Corp. Ph: 250-562-8288 Fx: 250-562-8287 rob@macneilfinancial.com
Suite 100A - 575 Quebec St., Prince George, BC V2L 1W6
Your legacy gift will provide hope and support to women and children. Providing programs and services since 1979: Children Who Witness Abuse, Counselling Services Courtwork, Justice Advocacy, Transition Houses Victim Services, Women’s Outreach, Young Parent Program and Young Babies Services
Prince George & District
ELIZABETH FRY SOCIETY 1575 - 5th Avenue, Prince George, BC V2L 3L9 10729 4407 RR0001
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Planning your charitable legacy SARA NEELY, LL.B., CFRE The Legacy Project
Philanthropy is the “love of humankind.” It allows donors to align the value of their assets with the values that are important to them. People give because charities have affected their lives – those charities may have helped along the way, educated, or inspired. Many give for personal reasons – what matters to them, and what impact they want to have today – and in the future. Family always comes first. After considering what an individual has and needs during his or her lifetime, and what to leave behind in an estate for family, there are many ways to support causes and concerns in the community. This type of giving is often called planned giving.
WHAT IS A PLANNED GIFT? A planned gift is usually a charitable gift from assets, rather than income, and it is part of a long-term financial and estate plan. It is easy to do: simply call a legal, accounting or financial advisor and/or a favourite charity and talk about the possibilities.
GETTING STARTED People often say “I don’t want to think about doing a will” or “I don’t have an estate” or “I’m not wealthy – this doesn’t apply to me.” If a person has a bank account, a house, or any other financial assets, he or she has an estate. It is important to make plans, so the people
and the causes the donor cares about are looked after. A philanthropist doesn’t need to be wealthy. Everyone can make a meaningful contribution. Planning can start any time and the Will can be updated as circumstances change. It is important to review a Will every few years – especially at the time of important changes such as marriage or divorce, birth of a child or grandchild, death of a family member, the sale of a business or retirement. Advisors will know about giving options and can help integrate charitable giving into financial and estate plans. They can work with the selected charity or charities to make sure wishes are met and the gift is made in the most effective way. Charities have information about their programs and services, how to make a gift and how that gift will impact them.
WAYS OF GIVING Anyone who can make a Will can make a gift to charity. Start fresh or add a provision to an existing Will by signing a document known as a Codicil. A certain dollar amount can be set aside, or one may leave a percentage of the estate or any assets left over after the family is provided for. A gift is revocable – the terms can be altered as circumstances change during the donor’s lifetime. This gives some flexibility in planning financial matters because the gift is not received until the estate is settled. Make sure the name of the charity is correct in a Will – ask the charity for the legal name and have a lawyer or notary public prepare the Will. The Canada Revenue Agency website (www. cra-arc.gc.ca) has
a list of all registered charities in Canada and helpful information about donating to charities. There are other ways to give through estate planning using assets such as an existing or new life insurance policy, or proceeds from a registered retirement savings plan, registered retirement income plan or a tax-free savings account. These gifts involve designating the charity as a beneficiary of the policy or plan, and can result in significant personal tax benefits. Anyone with an investment portfolio can benefit from making a gift of publiclytraded securities. Where the securities are transferred directly to public charities and foundations, there is no tax payable on the capital gain. The tax receipt equals the fair market value of the securities on the date of the gift, and the resulting tax credit offsets other taxes that may be payable. For those interested in ensuring longterm funding for a charity, think about creating or contributing to an endowment fund. An endowment fund is one where the capital is held by the charity in permanence, and invested to provide a steady return. A portion of the return is distributed on a regular basis and used by the charity to carry out its work. The balance of the return is kept in the fund to hedge against inflation. A donor advised fund is a type of endowment fund. The donor receives an income tax receipt for any gifts of capital and continues to be involved as an advisor in determining where the annual returns will be granted each year. These annual grants are paid out to federally-registered Canadian charities. A donor advised fund
provides the donor with flexible, personal involvement in his or her philanthropy. Donor advised funds started with community foundations. In recent years, financial institutions have also offered this opportunity to their clients.
TALKING TO THE CHARITY When planning a gift, talk to the charity. Let them know how their good work will be supported in the Will or estate plan – the size of the gift doesn’t need to be disclosed. More donors are choosing to designate their gifts to specific programs, equipment or other capital projects. The charity can check the specific wording in a Will and make sure they can carry out the donor’s intentions. Charities would like to thank supporters now and let them know about the impact of their gift on future generations. Many charities have created recognition societies to honour planned giving donors during their lifetimes. Donors are invited to events, receive publications and learn more about the organizations they support. There is always the option to remain anonymous, knowing the charity is grateful for the support. Leaving a charitable legacy for future generations is a precious gift and a reflection of a person’s values. What do you want your legacy to be? For more information about planned giving, contact Sara Neely, Director of Philanthropic Services at Victoria Foundation Phone 250-381-5532 Email: sneely@victoriafoundation.bc.ca
Your gift lives on… “We make a living by what we get; we make a life by what we give.” – Sir Winston Churchill You can plan a philanthropic gift no matter what your assets or income may be. A charitable giving plan makes the best use of your donations. By taking the right steps now you’ll preserve your legacy and transfer it as you wish – to the charity of your choice and your heirs – with minimum taxation, fees or other delays. Call Debra now for your complimentary copy of the Investors Group life planning report “Giving Back – Because you care and because you can”, which shares information on charitable giving strategies that will: • Avoid unnecessary probate fees • Provide all the benefits of a private foundation without the administrative responsibilities or costs • Turn a small monthly or annual donation into a substantial gift upon death • Minimize your taxes today, upon death, or both
A planned gift makes a difference for low-income working families and our community. By supporting Habitat for Humanity, you’re helping us to build affordable homes for families to purchase. This builds pride and creates more opportunities for their young children through the stability and security of home ownership. Your gift lives on with 100 percent of your donation going to the Habitat build programs helping to break the cycle of poverty housing. DEBRA MOFFATT B.A.
Families thrive. Communities prosper. Everyone wins.
Consultant Consultant
debra.moffatt@investorsgroup.com debra.moffatt@investorsgroup.com
(250) 564-2310 ext 249
(250) 564-2310
#900 – 299 Victoria Street Prince George BC
For more information on Planned Giving with Habitat for Humanity, please contact:
• Allow you to make a charitable gift now and continue to receive tax-preferred lifetime income from the assets you’ve donated In addition, the first 5 requests received for this report will also receive a complimentary copy of the book “Estate Planning through Family Meetings” by Lynn Butler, including a checklists/worksheets CD. Get in touch with Debra today to receive these valuable resources.
™ Trademark owned by IGM Financial Inc. and licensed to its subsidiary corporations.
Jo-Ann Pickering Habitat for Humanity - Prince George 220 Queensway, Prince George, BC V2L 1L2
Prince George
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Legacy Project - Free Press
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Leaving a bequest to a charity
MARK BLUMBERG The Legacy Project
“While it is well enough to leave footprints on the sands of time, it is even more important to make sure they point in a commendable direction.”
– James Cabell
When making the choice to leave a Planned Gift, the impact your decision will have on the lives of those who come after you is priceless. Through a life insurance policy, bequest, stocks or annuities – you can choose how your legacy gift is administered, and to what program it benefits. 100% of any gift you leave through the Spirit of the North will stay in your community and can be allocated for any of the following treatment needs: · · · ·
Cancer Diabetes Arthritis Ostomy
· · · ·
Heart · Palliative patients Stroke · Seniors Care Mental Health & Addictions · Paediatrics Alzheimers and many others….
Choose to make a Planned Gift to the Spirit of the North Healthcare Foundation. Contact us to discuss the options that are available, and what might be best for you.
1475 Edmonton Street, Prince George, BC • V2M 1S2 Telephone: 250.565.2515 • Fax: 250.565.2595 Toll-Free: 1.877.565.2515 E-mail: spiritofthenorth'northernhealth.ca
www.spiritofthenorth.ca
Leaving a bequest/legacy to a charity in your will can be an excellent way of supporting a cause that you care for or leaving a lasting legacy. Unfortunately, many bequests are not handled correctly or professionally and this may create problems and expenses for the charity and your estate, and in some cases, it can result in the gift being declined. Although it is generally important when dealing with an estate to use a lawyer, when one wants to make a bequest to charity it is even more important to obtain legal advice. What does a lawyer add to the equation? 1. Clarity. The lawyer ensures that the will is clearly drafted to avoid subsequent confusion or conflict including using proper bequest clauses that will be of benefit to the executors of the estate and the charity. 2. Validity. The lawyer ensures that the will is properly executed in accordance with the provincial requirements which are quite complicated. If these provincial requirements are not strictly followed the will could be held to be invalid along with the bequest. 3. Capacity. The lawyer can be a witness as to the testamentary capacity of the deceased at the time of making the will. If the will is set aside either because it was not executed properly (see point two above), or the testator did not have the mental capacity to make a will, then either a previous will would be effective, or if there is no previous valid will, then there would be an intestate succession ie. no will. The previous will may not provide any bequest. In the case of an intestacy (no valid will) the charity would not receive any of the bequests as none of the provinces intestate succession legislation, such the Ontario Succession Law Reform Act, provide for charities to receive funds on intestate succession. 4. Correct name of charity. A lawyer would conduct corporate searches on the proper legal name of the charity to ensure the correct name is used and that it is clear which charity is receiving the amount. This can avoid a conflict later between similarly named charities. For example, there are hundreds of registered charities that have the term cancer in their name. Furthermore, the lawyer would ensure that the charity is currently an active corporation and has not been dissolved. It is unfortunate but many charities do not have their correct legal name on their website or in their promotional material! 5. Charitable status. A lawyer can ensure that the charity is currently a registered charity with the Canada Revenue Agency. There are many worthy nonprofit organizations that are not registered charities and a gift to them by an individual will not result in an official donation receipt for income tax purposes. 6. Acceptability of bequest or restrictions. Many conditions or restrictions are placed in bequests by well meaning donors without fully understanding the effect of such conditions or restrictions. A lawyer can make inquiries to a charity with respect to whether the proposed bequest is within the objects of the charity to ensure that the legacy is not ultra vires (outside) the objects of the charity. A lawyer can discuss with the charity
whether any restrictions contemplated in the legacy are appropriate and whether the gift would be accepted by the charity. Many charities have gift acceptance policies – some of which limit who can give to the charity and the types of gifts the charity is prepared to accept. Some individuals place requirements in the legacy that leave the charity with little choice but to refuse the gift, which is a very unfortunate result. For example, some charities will not accept real property, such as a building or your house (because of the concern, however small, of potential environmental problems). Some charities are not equipped to deal with certain complicated or long term gifts and they may decline the gift if they consider it to be burdensome. Some of the conditions or restrictions may be vague and difficult for the charity to implement thereby creating an unintended headache for the charity. It is important to specify whether a restriction is to be a legally enforceable trust or a precatory (unenforceable) wish. If thought is given to this issue ahead of time a testator’s intentions can be respected and alternatives can be found. 7. Avoiding the Disappearing Will. Having a lawyer retain a will in a will’s safe, or at least a copy in the lawyer’s file, will reduce the likelihood that the will just disappears when other beneficiaries would receive a greater benefit if there were no will and one dies intestate. Another way to ensure that your wishes are respected is to inform the charity of the gift and perhaps even provide the charity with a copy of your will. However, some people for reasons of modesty or flexibility or otherwise, do not wish to advise the charity of the bequest or provide a copy of the will to the charity. 8. Other planned giving ideas. There are times when a legacy may not be appropriate and a major gift during the lifetime of the testator or another type of planned gift (such as gift of life insurance or marketable securities, or a designation of an RRSP) is more suited to the donor’s individual situation. 9. Estate Planning. A lawyer can assist with many aspects of estate planning including wills, powers of attorney for property, powers of attorney for personal care, trusts and other matters. Lawyers typically work with other professionals such as accountants, insurance agents, and financial planners to ensure a coherent estate plan. A legacy left in a will should be properly integrated with a donor ’s estate plan. For a more detailed discussion of these issues you may wish to review an article written by Lize-Mari Swanepoel and myself entitled Bequests - Avoiding problems with the ultimate planned gift written for the Ontario Bar Association program Righting Wills IV: Essential Tips for Practitioners. Mark Blumberg is a lawyer at Blumberg Segal LLP in Toronto, Ontario. He works in the area of nonprofit and charity law. He can be contacted at mark@blumbergs.ca or at 416-361-1982 x. 237. To find out more about legal services that Blumbergs provides to Canadian charities and nonprofits please visit www.canadiancharitylaw.ca or www. globalphilanthropy.ca. This article is for information purposes only. It is not intended to be legal advice. You should not act or abstain from acting based upon such information without first consulting a legal professional.
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Giving outside your species DEBRA PROBERT The Legacy Project
Did you know that only four per cent of us here in British Columbia have planned bequests in the event of our death? And that less than two per cent of all charitable donations in Canada are directed to animal protection organizations? These are sobering statistics for the charitable sector and downright depressing ones for animal charities. Animals and their suffering matter to me. They’re not able to speak for themselves – and in every instance, they’re at the mercy of humans and their activities. That’s why I have provided a bequest to the Vancouver Humane Society in my will. And I hope that some of you will consider doing the same – bequeathing a part of your earthly estate to a cause that matters to you. Here’s why. At the Vancouver Humane Society, we depend on bequests for about one-third of our revenue each year. In fact, it was a bequest that provided the means to hire program directors rather than relying on one underpaid employee and overworked volunteers to manage the many issues that animals face in B.C. This has meant a huge boost in produc-
tivity – the successes we’ve had are many. But our future is still dependent upon the generosity of those who think ahead, beyond their lifetimes, when the animals will still need their help. Some people hesitate to give to animal charities (or any charities). How do you know if an animal charity does what it says it does? You have to do your research. The name of an organization is not enough to make a decision – it doesn’t provide any information as to how effective the organization is at carrying out its mission. For that kind of information, you need to dig a little deeper –by looking at the organization’s website, annual reports (including yearly financials), newsletters and other resources that can and should be readily available. Another good source of information, particularly about how much money charities have and what they spend it on, is the Canada Revenue Agency (CRA) - http://www.cra-arc.gc.ca/ chrts-gvng/menu-eng.html. Charities’ information returns are posted annually and reveal, among other things, how much money was spent on fundraisers and the range of salaries for employees. Although there seems to be quite a bit of information in the
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information return, some of it can be misleading. For instance, management and administrative expenditures are somewhat loosely defined by CRA and many expenses, such as salaries, can be considered administrative or program expenses. Even if a charity spends a major portion of its expenses on salaries, it’s wise to remember that charities need people to develop and carry out programs. Of course there are thousands of volunteers who generously give their time to help others. However, volunteerism is becoming increasingly difficult to fit into busy lifestyles, especially as families often need two wage earners to make ends meet. The right paid staff is invaluable and provides stability, consistency and effectiveness. The bottom line is that donors, including those who provide for charities in their wills, need to do their homework. Phone the charity; speak to the executive director; ask what achievements have been accomplished, not only recently, but in the past. Read, listen and ask. Then call your lawyer, and extend your compassion – not only beyond your lifetime, but also, I hope, to the other species that share this wonderful world with humans. Debra Probert is the Executive Director of the Vancouver Humane Society.
Central British Columbia Railway and Forest Industry Museum Society
Assisting Prince George and Northern BC families with children in Friends extraordinary medical of Children need since 1999.
Friends of Children is a charitable organization that relies upon donations. Your donations go to families with children in medical need. The RFM’s mandate is to preserve and interpret the history of the railway, forestry and other industries and culture that grew around them: • preserving, restoring and interpreting artifacts of historical significance related to the railways, forestry and industrial development in Central BC; • provide educational, hands-on experience to public through static and operating displays and display lifestyles of people involved in railways, forestry and industries developed in Central BC. Help preserve our heritage by making a donation to your Railway and Forestry Museum.
PLEASE CALL TOLL FREE
1.866.564.2217 www.friendsofchildren.ca
RAILWAY & FORESTRY MUSEUM PRINCE GEORGE & REGION
Address: 850 River Road, Prince George BC V2L 5S8 Charitable Tax No: 126179167 RR0001
Phone 250.564.2217 | Fax 250.564.2247 PO Box 2463, Prince George, BC V2N 2S6
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Have a two-way talk with your advisor
When we sit down with a trusted advisor, whether it’s a lawyer, accountant or financial planner, we often wrongly assume that the dispensation of advice is a one-side affair. They talk. We listen. They advise. We do. This paradigm, however, assumes that the trusted professional is fully aware of the context in which advice is given AND knows precisely what questions to ask. It presupposes that the client’s role is to provide information, passively listen and reflexively follow. When it comes to charitable giving, however, we must move away from this paradigm if we want to truly advance philanthropy. In 2010, Mackenzie Investments conducted a national survey to understand how charitable giving fits into the financial advisor’s practice. Not surprisingly, we learned that most advisors simply aren’t raising the issue of charitable giving with their clients. We also learned why: 1. Advisors don’t have a strong level of comfort with the technical issues (e.g. tax considerations) associated with charitable giving 2. Advisors feel their clients aren’t looking for guidance on the subject 3. Advisors feel giving is a private matter and should not be discussed with the client Given these obstacles, how do we overcome the fact that charitable giving isn’t part of most mainstream financial planning discussions? The most obvious one is to stop waiting for our advisors to bring up the subject. Ask your advisor what options are available to you when it comes to structuring your charitable giving?
DMC
Ask them how much it will save you on like lawyers, accountants and estate plan- to discuss charitable giving with their cliyour taxes? Tell them about your personal ners) are starting to recognize the hole in ents, most donors do not identify tax savgiving and deep-rooted values. Force their existing educational offerings. These ings as a major driver behind their giving. them to learn. By doing so, you’ll increase groups are beginning to develop training Advisors need to recognize that conversatheir knowledge and level of comfort, programs for their constituents. These tions about giving are more about values even to the point where they start bring- organizations must continue to recognize than money. Even with a basic knowledge of charithat charitable giving is an important piling it up with all of their clients. table giving, advisors can easily initiate Even if the discussion is initiated by lar of an effective financial plan. Advisors have a very strong sense of a discussion on the topic. If your advisor the client, advisors have an important role to play in advancing our knowledge community. These are active donors and doesn’t bring it up, don’t hesitate to raise of charitable giving. Since many Cana- volunteers. They need to recognize that the subject. Next time you’re in your dians rely heavily on professionals for their clients share these values and are advisor’s office, tell him a little bit about trusted advice, we need to ensure that looking for effective strategies to make a how like to support your community. You advisors are identifying opportunities to difference. Furthermore, while advisors may be surprised where the conversation encourage philanthropic discussions with cite tax as the reason they are most likely might lead. their clients. Furthermore, as charitable giving becomes increasingly complex (as a result of more options), donors will While a charitable bequest in your Will is an easy for tax relief during the donor’s lifetime; the second rely even more heavand very effective way to make a legacy gift to your option defers the tax relief, benefiting his or her ily on advisors. favourite charity, there are other options when comes estate at death. Over the past sevto making a deferred donation. This article will Upfront Tax Relief: eral years, I have explore two of them: life insurance and retirement By assigning permanent ownership of a life policy learned from talking plans. to the charity, the donor can receive an immediate to thousands of advitax receipt for the fair market value of the policy, sors that there is a LIFE INSURANCE along with tax receipts for any subsequent premium general discomfort payments. At the death of the donor, the full death Life insurance provides a donor with the opporaround charitable benefit is paid to the charity (with no additional tax tunity to achieve significant upfront or deferred tax giving. This discombenefit to the estate of the donor). benefits while creating a powerful future gift for the fort stems mainly from a lack of techni- charity. cal knowledge. DECISIONS, DECISIONS SAMPLE CASE STUDY – The good news is Life insurance provides an enduring way to leave ROBERT (BOB) ANDREWS that financial institutions (which employ a lasting legacy to your favourite charity. While the or service tefns of charity typically receives the Death Benefit from the Bob Andrews, 50-year-old father of two teenage thousands of finan- policy upon the death of the donor, there are two boys and successful veterinarian, decides to make a cial advisors) and fundamental choices when it comes to receiving a tax large deferred contribution to his favourite charity. professional asso- benefit when donating life insurance. The first choice creates an immediate opportunity turn to PAGE 21 ciations (for groups
Using your life insurance
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250.564.2660
Looking for a professional executor or assistance with your own executor responsibilities? We can help. Today's complex estate and tax legislation means increasing demands on the executor. The specialists at Scotiatrust are experienced, impartial and may be your best choice as executor. In addition, this same expertise is available to support you should you be named as executor, providing peace of mind at a difficult time. To find out more about our executor services, Call today.
Ray Noonan, STI, PFP, MBA Northern BC Region 390 Victoria St, Prince George BC 250-981-3140 ray.noonan@scotiaprivateclient.com
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Easy to name a charity as beneficiary from PAGE 20
After careful consultation with his wife and their Financial Advisor, he makes the decision to donate his existing whole life policy to the DogsRBest Foundation. The policy has a current fair market value of $250,000 (as determined by an independent actuarial calculation) and a death benefit of $500,000. Bob assigns full ownership of the policy to the charity and receives an immediate tax receipt for the fair market value ($250,000). He also receives ongoing tax receipts for any future premiums paid on the policy. The tax credit from the donation generates immediate tax savings for Bob. At his death at the age of 85, the policy pays the death benefit of $500,000 and increases capital for the ongoing preservation of the endowment fund that he created at the Foundation. Deferred Tax Benefit: In the second option, the donor names the Charity as beneficiary of the policy but doesn’t assign ownership (and thus leaves the door open for donors to change their mind, if their circumstances changed for example). No tax receipts are issued during the donor’s lifetime for the fair market value of the policy or any future premium payments, but on the death of the donor, he or she will receive a tax receipt for the full death benefit of the policy. This strategy can provide significant tax savings on the terminal tax return.
SAMPLE CASE STUDY – GLORIA HUBBLE Gloria Hubble, renowned heiress of the Portobello Bakeries empire, decides to name The Kids Can Bake Foundation as beneficiary of her life insurance policy. Gloria decides to not assign ownership of the policy to the Foundation so doesn’t receive any tax benefit at the
time of her decision or during her lifetime. However, on her death at age 83, the policy pays the death benefit of $500,000 to the Foundation which can then begin creating scholarships for future bakers. Her estate receives a tax receipt for the full death benefit of the policy. Summary of Benefits – Example Policy Whole Life Insurance Policy Death Benefit - $500,000 Current Fair Market Value (FMV) - $250,000 Annual Premiums - $5,000 Treatment #1: Immediate Tax Benefit: Assigning Ownership Donation tax receipt for FMV of $250,000 Lifetime Tax Benefit: Annual donation tax receipts of $5,000 when premium paid Estate Tax Benefits: None Funding Charity: Foundation receives $500,000 upon death of donor* Treatment #2: Immediate Tax Benefit: No Assignment of Ownership Lifetime Tax Benefit: None Estate Tax Benefits: Estate receives donation tax receipt for $500,000 Funding Charity: Foundation receives $500,000 upon death of donor *Foundation, as owner, reserves right to cash policy. Cash value may be less than FMV
RETIREMENT PLANS It is extremely easy to name a charity as a beneficiary of your retirement plan. Simply contact your plan administrator and ask them how to name (or change) a beneficiary of your registered plan (such as an RRSP or RRIF). In most cases, it is also possible to name a charity as a beneficiary of a portion of your plan or as a contingent beneficiary (who would receive the proceeds in the event that the named beneficiary(ies) predecease you). Note that the rules differ in Quebec so it is important to
contact your plan administrator for details. When an RRIF and RRSP is cashed in (either at death or during one’s lifetime), the fair market value of the withdrawal is immediately taken into income at full marginal rates. Of course, whatever portion of your plan that you choose to donate is also eligible for a donation receipt and the significant tax benefits that result from charitable donations.
SAMPLE CASE STUDY – CARL MACDOUGALL Carl MacDougall is a 78-year-old retired investment specialist. He is interested in making a sizeable donation to support the local hospital foundation. He has accumulated a significant registered plan (now a RRIF) with a value of approximately $560,000. Carl has decided to donate one-half of his RRIF to the Foundation. Let’s take a look at the tax implications of such a gift assuming the RRIF is worth $500,000 at the time of Carl’s death with a tax rate of 45%. In the end, Carl’s total tax bill after accounting for the RRIF income and the charitable donation is $112,500 ($225,000 - $112,500). This dramatic tax reduction is coupled with the fact that Carl has left a substantial legacy gift of $250,000 to his favourite charity.
TAX INCENTIVES FOR TESTAMENTARY DONATIONS: As a result of changes to the Income Tax Act over the years, testamentary donations (typically through wills, insurance policies or retirement plans) have the power to assist in dramatically reducing taxes payable during one’s lifetime or upon death. Consulting legal and tax advisors is absolutely essential when considering making this type of donation.
Helping people since 1957 AiMHi supports over 1,000 people who have special need each year. We provide vocational, residential and advocacy services for children, adults and their families.
Gifts to the Canadian Cancer Society fund research and prevention initiatives and help families like the Kents create life-changing memories at Camp Goodtimes.
Join the fight. Leave a legacy. Did you know that a legacy gift to the Canadian Cancer Society can fight cancer and protect your estate from tax? The Estate Tax Eliminator Clause can reduce your final taxes to zero.
950 Kerry St., Prince George, BC V2M 5A3
Ph: 250-564-6408 Visit our website
www.aimhi.ca Charity Number 11910 3323 RR0001
You can help fund the best cancer research, prevention and support programs. For your copy of the Estate Tax Eliminator Clause and a Personal Estate and Will Planning Guide, please contact Toni Andreola at tandreola@bc.cancer.ca or call 1 800 663 - 2524.
cancer.ca
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Preserving your land by donating As a landowner, you may want to see certain features of your property protected and you may be interested in gifting or selling your land to a land trust such as The Land Conservancy (TLC). There are a number of different ways that you may go about gifting or selling your land to TLC. The Land Conservancy is interested in lands and properties that have significant ecological, cultural or agricultural value. In addition, TLC protects land that has important scientific, recreational, or scenic values. Some of the different types of property that TLC has protected include ranchland, wetlands, grasslands, oldgrowth forests, heritage buildings and gardens, recreational trails, eco-forestry sites, and bat houses. There are a couple of ways that you, as a landowner, can go about donating your property to TLC.
With an outright donation, you agree to gift your property to The Land Conservancy. In return for your donation, you will receive a tax receipt for the appraised value of the donation. If your property has ecological value, you may be able to increase this tax benefit under the Ecological Gifts Program. For landowners who wish to donate their land or an interest in their land to a land trust, the Ecological Gifts program helps increase the tax benefits that can result from such a donation. The Ecological Gifts Program encourages landowners to conserve ecologically sensitive land by donating it to a qualified recipient, such as The Land Conservancy. Landowners can either donate the land outright (by transferring title to all or part of their land) or donate a legal interest in their land (by registering a conservation covenant against their land). OUTRIGHT DONATION To be considered ecologically sensitive, a property must either currently contribute or have the potential to contribute to Canada’s biodiversity or environmental heriOLE H. SORENSEN, E.P.C. tage. In other words, any PRINCIPAL property that provides habitat or has ecological 935 Brunswick Street values will be considPrince George, B.C. V2L 2C3 ered. In addition, properties with proper restoPh: (250) 561-1011 ration plans may also be Toll Free: 1-800-561-1024 considered. Fax: (250) 561-1037 SORENSEN Donors benefit from e-mail: ole@sorensengroup.ca FINANCIAL SERVICES INC. this program in two ways. The first is know-
Estate Planning and Charitable Giving Specialists
Key Life WCF Financial Inc.
ing that their land will be protected forever. Properties donated to a conservation organization under the Ecological Gifts Program cannot be mortgaged or re-sold. The second way donors benefit is through the significant income tax benefits they receive. Donors (private or corporate) receive a tax receipt for the full value of their ecological gift. This tax receipt can be applied against 100% of their net annual income. Corporate donors may deduct the amount directly, while individual donors can use it to calculate a non-refundable tax credit. Any unused portion of the tax receipt may be carried forward for up to five years. None of the capital gain from the transfer of the property is taxable instead of the usual 50%.
LIFE ESTATE By donating a life estate to The Land Conservancy, you (and perhaps your children) retain the right to remain on your property for the remainder of your lives. Once you are no longer living on the property, it will transfer to TLC. Usually, a life estate involves certain restrictions on your use of the property. A life estate may contain some tax benefits depending on the value of the property and the length of time you will remain on the property.
SELLING YOUR PROPERTY
Selling your property to TLC can be more complicated than donating because TLC will need to determine if the financial resources are available to purchase your property. We will also need to undertake an assessment to determine whether or not the property has appropriate values that should be protected – as a charity, we must always be diligent in ensuring that we are working to meet our mandate.
OUTRIGHT SALE If you wish to sell your land directly to The Land Conservancy, you will need to determine how much money you wish to receive from the sale of your land. The best way to do this is through a certified appraiser who can determine the fair market value of your land. Once you have determined your sale price, TLC staff will need to determine if the resources are available to purchase your land. Because resources are limited, properties with key values are usually chosen by TLC for outright purchase.
BARGAIN SALE You may wish to sell your land to TLC, but you may not want or need to receive full market value for your land. With a bargain sale (also called turn to PAGE 23
Prince George Needs her Creativity!
Locally Owned and Operated in Prince George Since 1971 Matt Calvert Senior Partner
Creativity is the core of her ability to come up with innovation and solutions to problems.
Consultation is Free Phone: 250-563-6777 Toll Free: 1-888-563-6777
Your legacy is an investment in the young minds that will help the community prosper in the coming decades. Any contribution you are able to make is a generous one.
Contact: Peter Thompson, Managing Director Two Rivers Gallery 725 Civic Plaza Prince George BC V2L 5T1 Tel: 250-614-7803 peter@tworiversgallery.ca
Prince George Regional Art Gallery Association CRA# 107858763RR0001
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The Land Conservancy from PAGE 22
a Split Receipt), you can arrange to sell your land to TLC at a price that is lower than the full market value. If your sale price is less than 80% of the appraised value, you can receive a tax receipt for the difference. Once you have considered some of the different options available for transferring your land, it is a good idea to consult the Regional Manager for your area. The Regional Manager can visit your property and help you to consider
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LLP Accounting for Your Future
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how your property fits with The Land Conservancy. You should also seek independent tax and legal advice to help you with this process. Once you have decided to transfer your land, staff from The Land Conservancy will sit down with you and develop a Memorandum of Understanding. This document will outline the sale or gifting process and the next steps that need to be taken. An appraisal will also need to be done to establish the value of the property.
Saint Vincent de Paul
Prince George
St. Vincent de Paul offers meals, hampers and many support services to those in need in our community. The St. Vincent de Paul store provides good quality goods for reasonable prices and all proceeds are used to support the other services offered.
Make a lasting impact on the lives of people in your community.
St. Vincent de Paul depends on the generosity of many to support those in need.
TBJ can provide you with advice in relation to Estate and Legacy Gift options and tax planning.
It feels good to give.
Please think of the good your donation to St. Vincent de Paul will provide.
STORE 1180 Third Avenue, Prince George, BC
Your Community – Our Community Prince George OfďŹ ce: #300 - 180 Victoria Street, Prince George, B.C. V2L 2J2
Tel: (250) 564-2014 Toll Free: 1-888-564-2014 Fax: (250) 564-5613
TBJ Terlesky Braithwaite Janzen LLP
Call us.
DROP-IN CENTRE 1220 Second Avenue, Prince George, BC
The Saint Vincent de Paul Society Box 1617, Prince George, BC V2L 4V6
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